Demystifying Auction Lingo: A Glossary of Common Terms

Auctions, whether for real estate, art, antiques, or other valuable items, come with their own language and terminology. To help you navigate this world with confidence, we at Dynamic Auctioneers put together a comprehensive glossary of common terms and their definitions. Whether you’re a seasoned bidder or a novice, understanding these terms will enhance your experience and ensure you’re well-prepared to participate.

Auctioneer

This is the person who conducts the auction. They are responsible for presenting items, accepting bids, and declaring items sold.

Vendue

Another word for an auction, or public sale.

Reserve Price

The reserve price is the minimum price set by the seller (or house) at which they are willing to sell an item. If bidding does not reach this amount, the item may be withdrawn.

Bid

A bid is an offer made by a potential buyer to purchase an item at a specific price. Bids can be made verbally, by raising a paddle, or electronically, depending on the type of auction.

Hammer Price

The hammer price is the final price at which an item is sold when the gavel falls, signifying the end of bidding on that item.

Lot

A lot is a group of items that are sold together as a single unit. Lots can contain multiple items or a single item.

Buyer’s Premium

The buyer’s premium is an additional fee, usually a percentage of the hammer price, paid by the buyer on top of the final bid. This fee goes to the house.

Absentee Bid

An absentee bid is a bid placed by a bidder who is not physically present at the vendue. These bids are submitted in advance and are executed on behalf of the absentee bidder by the auctioneer.

Reserve Auction

In a reserve vendue, the seller sets a reserve price, and the item will only be sold if bidding reaches or exceeds that amount.

No Reserve Auction

In contrast to a reserve vendue, a no reserve vendue has no minimum price, and the item will be sold to the highest bidder, regardless of the final bid amount.

Appraisal

An appraisal is a professional evaluation of an item’s value, often conducted by an expert to determine its worth before it is consigned to be sold.

Catalogue

The catalogue is a printed or online listing of all the items available in an auction, including descriptions, images, and estimated values.

Bid Increment

The bid increment is the predetermined amount by which bids must increase during a vendue. It ensures that bidding progresses in an organised manner.

Reserve Met

When the bidding reaches or exceeds the reserve price set by the seller, the item is said to have its reserve met and will be sold to the highest bidder.

Gavel

The gavel is the small hammer that the auctioneer uses to signal the end of bidding on an item and declare it sold.

Consignment

Consignment refers to the process by which a seller entrusts their item to a house like Dynamic Auctioneers to sell on their behalf. The house typically charges a commission for this service.

Fluency in Auction Terminology

With this glossary of common terms at your disposal, you’re better equipped to navigate the exciting world of auctions. Whether you’re attending for art, real estate, or any other type, understanding these terms will help you communicate effectively, make informed bidding decisions, and fully enjoy the vendue experience.